From a pure TA perspective, we should bounce here

12 mar 2020

Just when the dump couldn't get any worse - Trump announces a trade & cargo ban between the EU and the states - rattling markets even more. We dumped below the channel, and the 200 weekly MA which has defined this whole bull market. However, we can see a bounce is in the work. Everything depends on the US market open. I believe if we can see one bit of good news we should see an aggressive bounce to the top of the channel as shorts cover and some people start to buy the dip. Whether we can then break the top of the channel depends on how the nCov news unravels. If it fails to break the top, we can expect new lows.